In this paper we draw from the knowledge-based view of the firm and dynamic capabilities theory to examine the effects of IT competencies on the innovation outcomes in firms. We argue that IT competencies impact product innovation by enhancing component knowledge such as technological and market knowledge of the firm. We are also posit that IT competencies allow firms to develop combinative capabilities that allow them to integrate component knowledge synergistically to meet competitive needs.
Han, Shu and Ravichandran, T., "Understanding the Roles of IT in Product Innovation: Component Knowledge and Combinative Capabilities" (2005). AMCIS 2005 Proceedings. 517.